Income statements for Vernon Company for Year 3 and Year 4 follow. VERNON COMPANY Income Statements Year 4 Sales $200,200 Year 3 $180,200 Cost of goods sold 142,100 120,100 Selling expenses 21,700 19,700 Administrative expenses 12,400 14,400 Interest expense 3,900 5,900 Total expenses $180,100 $160,100 Income before taxes Income taxes expense Net income 20,100 6,800 $13,300 20,100 3,100 $17,000 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) VERNON COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Percentage Change over Year 3 % %